Recent content by JR.

  1. J

    USA Scrap _ Standard Costing

    In my operation, when WIP completing an item standard gross absorption is recorded in the sub-ledger. Pretty basic. Scrap transactions are posted to a scrap account which calculates net absorption (gross absorption less scrap). First question - In this scenario, is the debit to scrap intended...
  2. J

    USA Cost Per Earned Hr

    When using the metric cost per earned hour, how is this metric generally analyzed? For example, costs of $1,000,0000 with 5,000 earned hours will produce a $200/earned hr. But, if the target was $180/earned hr, where should the drill down begin? Spending could be over budget by $100k and...
  3. J

    USA Factory Supplies Not Used by Month End

    In our plant, factory supplies are held in consignment until issued. Once issued, these items are expensed in the system, and generally used in a short period of time. The timing of month-end results in additional expense incurred since the supplies are issued in bulk and if issued too close to...
  4. J

    USA Production Volume Variance

    Hi Yash , thanks for validating. Your calculation was another one I used and that’s why I was a bit confused. I used a couple different sources and they seemed slightly different. It appears that expense does not factor into the calculation/analysis. We are only using absorption? At high...
  5. J

    USA Production Volume Variance

    I am looking for FOH variance. With your formula, I would come up with 8300-7000*16.29 I’m assuming the volume measure would be hours. Do you agree?
  6. J

    USA Production Volume Variance

    EXPENSE: Company ABC has forecasted $190,000 in Fixed Overhead for the month of April 2018, but actual fixed overhead was $160,000 netting a favorable spending variance of $30,000. ABSORPTION: Company ABC has forecasted $114,000 in FOH absorption with 7,000 earned hours (rate of $16.29/hr)...
  7. J

    USA Cost Ratios for Operations

    All makes good sense and it sounds like I’m aligned. One question : what’s ni?
  8. J

    USA Cost Ratios for Operations

    What’s buckets does your split go across ? 30 direct 30 fixed 30 variable 10 material? Headcount is lean: labor efficiency is ~80% Volume efficiency is minimal; fixed cost are covered with constant volume Biggest challenge currently is supplies, maintenance, and utilities. With that, I want...
  9. J

    USA Cost Ratios for Operations

    I am trying to allocate a cost metric between material and conversion costs, then between fixed/variable/direct. Ultimately, I would like to take the fixed and variable portions and balance across expense types. What is a standard split? Does it depend on industry? My initial thought was to...
  10. J

    USA Workers Comp

    You are right on. The reserve was setting according to the nature of the injury based on past experiences and the knowns as you mention, and the adjustment was based on news facts that arouse. Thanks.
  11. J

    USA Workers Comp

    I am not familiar with the workers compensation process, anyhow, my question is in regards to the expenses or claims paid. Here is my scenario: we accrue for processed claims and have a reserve that sometimes swings both directions. In the month of Feb, we took a substantial hit for claims 2...
  12. J

    USA Looking to make a career change to accounting, unsure of my options.

    Is this what you did? I have thought about getting my CPA for this reason and start building clientele while being employed at my current job.
  13. J

    USA Looking to make a career change to accounting, unsure of my options.

    I would focus on a Bachelors in Business Admin with your focus in accounting. The other business classes such as operations management, leadership, MIS etc are critical to being a key finance/accounting person in the business. Bookeeeping/AR/AP and the tidious work is primarily sent overseas for...
  14. J

    USA Passed CPA exam with 2.3 undergrad gpa and 3.3 grad gpa. Can I get hired by CPA firm?

    If you don’t meet the GPA requirements then you will need to submit a GMAT. Check out www.eou.edu. One of the lesser competitive schools and a four year public university that offers online MBA.
  15. J

    USA Fixed Asset Capitalization

    I found out that some subledgers were interfaced with the asset and some weren’t. Basically, we didn’t utilize the full functionality of the system. Thanks for the feedback
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